期刊名称：Economic and Social Progress in Latin America
电子版ISSN：0095-2850
出版年度：2005
卷号：1
出版社：Washington, DC
摘要：DEPOSITORS play a crucial role in guaranteeing the soundness of the banking system. When banks assume excessive risks, depositors may respond by going to other banks or other financial systems, or by demanding higher interest rates on their deposits. Since deposits are the major source of funds for banks, depositors’ actions may lead the banks to align their risk-taking incentives with those of depositors. This is known as market discipline, a key complement for the discipline imposed by supervisors.
Chapter 6 outlines the justifications for banking regulation. These explanations center on the protection of small depositors and the moral hazard created by the presence of a safety net to protect the payments system and the financial system as a whole. Unfortunately, banking regulation and supervision can fail and hence may not always provide the necessary discipline for banks.
